Nifty IT up 9% in five days: TCS, HCL Tech, Infosys, LTM, other IT stocks gain; what’s driving the momentum?

IT stocks like Tata Consultancy Services (TCS), HCL Technologies, Infosys, LTM, among several others, have powered the sectoral benchmark Nifty IT index around 9% in the last five trading sessions as equity market investors focus on the healthy earnings performance so far in the Q2 results season amid strong revenues from AI operations.

On October 14, the Nifty IT index extended its rally by 1.8% to hit an intraday high of 30,377.15 points during Wednesday’s market, in comparison to 29,830.10 points at the previous trading close.

Equity investors were focused on the sector-specific action on Wednesday’s market, amid the broader weak global cues. Healthy earnings-led momentum in the Q2 season so far has added major support to the IT stocks since bellwether company TCS announced its earnings last week.

Despite the recent gains in the sector, investors remain cautiously optimistic about the industry, with certain concerns looming over the organic growth of the companies and overall weakness in certain segments.

Experts have shared their take on the Q2 performance so far, with some citing resilient services growth, strong margins, and AI revenue momentum, while others keep a cautious watch on growth and valuations of the companies.

Why were IT stocks rising on Wednesday?

IT stocks witnessed a strong performance during the trading session on Wednesday, October 14, as investors focused on Q2 earnings momentum amid strong deal wins and capital rotation out of crude oil-sensitive sectors into high-growth sectors like tech.

As of 12:30 pm (IST), the Nifty IT index was trading 1.1% higher at 30,156 points on Wednesday’s market in comparison to the previous equity market close, according to NSE data.

Stocks like Infosys, TCS, Wipro, and LTM were leading the pack of gainers during the trading session on October 14.

The major IT stocks were also witnessing a spillover support effect from Tata Elxsi’s earnings growth, with revenues and margins surpassing market estimates in the September quarter FY27 earnings released on Tuesday evening.

The IT pack was also witnessing momentum after Infosys CEO Salil Parekh said that AI services accounted for over 8% of its revenue in the second quarter and is growing at a double-digit rate sequentially.

Parekh also shared that he estimates the AI revenues will drive almost half of its work in the next two to three years.

IT stocks in focus today

Latest updates

Latest buzz in the IT sector is now focused on Q2 earnings, with TCS and HCL Tech having already disclosed their September quarter performance over the last few days, indicating a resilient demand trend, healthy deal wins, and strong AI revenue growth.

Data showed that TCS’s consolidated net profits surged around 15% to ₹13,884 crore in the period under review, with revenue from core operations advancing 11.2% year-on-year, as per the financial statements.

TCS’s total contract value (TCV), or the total deal value secured by the firm in a particular period, surged to $9.6 billion as of the quarter ended September 2026.

Similar to Infosys, TCS’s management also said that the company’s AI revenues remained strong at $3.1 billion in the September quarter, crossing 10% of the overall revenue in the period due to the overall momentum and demand in the industry.

Despite the AI revenue momentum, Infosys’ Parekh was concerned about the long-term risks in the AI boom, citing the high cost of chips, uncertainty over how long data-centre capacity will remain relevant, and the possibility of new AI models significantly lowering inference costs.

Looking at HCL Tech, the company’s earnings were in line with and slightly ahead of market estimates, adding support to the sentiment of investors amid AI concerns in the global market.

Data showed that HCL Tech posted nearly 11% growth in consolidated profits, an 11.5% surge in revenue from core operations year-on-year and a 3% jump in revenue sequentially in the September quarter results.

The company also revised its lower revenue and services guidance for FY27, and now it expects revenue growth in the range of 2.5%-4% YoY in constant currency terms.